Press Release – MyAeroSatu’s Response to Malaysia Aviation Group (MAG) Order for up to 60 Boeing 737 MAX Aircraft

I received the following Press Release from the Persatuan Aeroangkasa MyAeroSatu (MyAeroSatu). 

 

 
Dear Sir/Madam

Subject: Press Release – MyAeroSatu’s Response to Malaysia Aviation Group (MAG) Order for up to 60 Boeing 737 MAX Aircraft 

Warmest greetings from Persatuan Aeroangkasa MyAeroSatu (MyAeroSatu).

Following Malaysia Airlines Retirees Association (MASRA) press conference held on 21 August 2025, our association MyAeroSatu feels compelled to share our perspective on the Government’s recent announcement regarding the purchase of 60 Boeing 737 MAX aircraft.

We would greatly appreciate your kind support in publishing our views, as outlined in the attached Press Release.

Should you require further clarification or additional information, please do not hesitate to contact me directly.

Thank you for your continued support and partnership in highlighting issues that are important to Malaysia’s aerospace community.

Kind regards,
 

Dzul Bahrin Asmawi

Secretary
Persatuan Aeroangkasa MyAeroSatu

Tel: 019 388 3770
Email: dzul.mdar@gmail.com

 

 

PRESS RELEASE
Date: 29 August 2025
 

Is the Acquisition of Sixty Boeing 737 MAX Aircraft a Sound Decision?

 
The Malaysia Aviation Group’s (MAG) recent commitment to acquire 30 Boeing 737 MAX aircraft including the already announced order for 30 (18 MAX 8 and 12 MAX 10) marks a significant decision aimed at fleet modernization, fuel efficiency, and cost reduction. 

 

While this appears to be a strategically logical step to rejuvenate Malaysia's short and medium-haul operations, the move also warrants a deeper evaluation of its financial prudence, operational readiness, and alignment with national economic goals particularly the 13th Malaysia Plan (13MP). Ultimately, the question is not who is purchasing the aircraft whether it is MAG, Khazanah, or the Government but whether this investment delivers a strong return and long-term value for the nation.

 
Aviation: Asset or Liability?

 
History offers us sobering lessons. The ill-fated acquisitions of two (2) Boeing 747-400 Freighters and six (6) Airbus A380s by past administrations highlight the risks of poor foresight and weak implementation. These high-capacity aircraft were underutilised, leading to enormous sunk costs and limited resale value.

 
Modern aircraft, even the most technologically advanced, can become financial liabilities without disciplined maintenance, effective utilisation and sound financial strategy. The newer 737 MAX aircraft do promise better fuel economy, reduced emissions, and operational cost savings but only if managed with rigour.

 
Key Financial Strategies: Structuring the Deal Right
 

The method of acquisition significantly influences the aircraft's overall value to MAG and its shareholders:

 
1. Outright Purchase
o Pros: Full ownership, no interest cost, flexibility in asset usage.
o Cons: High capital outlay, full depreciation risk, and resale exposure.

 
2. Finance Lease 
o Pros: Eventual ownership, lower upfront cost, structured repayment.
o Cons: Long-term financial commitment, limited exit flexibility.

 
3. Operating Lease
o Pros: Lower initial commitment, suitable for temporary capacity needs, reduced
resale risk.
o Cons: Highest long-term cost, no ownership, less flexibility for aircraft modification
or branding.

 
Selecting the right structure is critical to maintaining healthy cash flow and ensuring return on investment especially for a company still in recovery mode.

 
The Road Ahead: From Asset Management to Industrial Strategy

 
Malaysia once manufactured the “Aero Tiga” trainer aircraft in 1993 and was a key player in Asia’s Maintenance, Repair, and Overhaul (MRO) ecosystem. The question is not just about acquiring 60 aircraft, but whether this decision accelerates our long-term industrial competitiveness.

 
Aircraft value can deteriorate rapidly without consistent MRO. Both airframe and engine life cycles depend on strict adherence to global maintenance standards. MAG must ensure that its MRO practices remain world-class, reminiscent of Malaysia’s heyday in the 1990s, when our national carrier was among the top ten globally, and our MRO industry was ranked top three in the Asia-Pacific.

The aircraft acquisition should not be viewed in isolation—it must be a catalyst for broader transformation:

 
• Rebuilding aviation credibility,
• Reinvigorating aerospace investments,
• Repositioning Malaysia as a high-value player in global supply chains.
 

The Strategic Context: 13th Malaysia Plan (13MP)
 

Professor Emeritus Tan Sri Dr. Anuwar Ali rightly noted on 23 July 2025 that Malaysia’s success hinges on “discipline, transparency, and effective implementation” of strategic policies. Aerospace is identified as a high-impact, high-technology, and high-income industry under 13MP offering Malaysia an opportunity to revive its ambitions of becoming a regional aerospace hub.
 

To do so, government-linked companies like MAG must be governed by performance-based leadership, commercial viability, and transparency in procurement and implementation. 

 

This includes:

 
• Strengthening the governance of procurement processes.
• Enforcing safety and quality oversight across the fleet.
• Developing resilience against supply chain disruptions or delivery delays.
• Investing in talent and local MRO capabilities to ensure long-term value capture.

 
Conclusion: Right Aircraft, Right Time, Right Strategy

 
The acquisition of 60 Boeing 737 MAX aircraft can be a sound decision but only if backed by the right financing model, strategic planning, and unwavering operational discipline.
It is time for Malaysia to shift from reactive management to strategic execution. Let this be a wake-up call for a broader rethink of national asset management, business leadership and industrial policymaking. Malaysia has the talent, the infrastructure, and the legacy. What we now need is clarity of vision, courage in execution and accountability in delivery. 

 
We also would like to take this opportunity to welcome aerospace professionals and organisations who share this vision to join us in building a stronger, more unified industry.

 
Thank you

 
Released by:  Persatuan Aeroangkasa MyAeroSatu (MyAeroSatu) is an independent coalition of local aviation professionals committed to advancing the future of Malaysia's aerospace industry. Their mission is to foster a unified direction toward shared goals, particularly in Aero-Manufacturing and Aircraft Maintenance, Repair & Overhaul (MRO).

 
MyAeroSatu plays a vital role in engaging with government agencies and private stakeholders, raising awareness of systemic challenges while offering practical and forward-looking recommendations. Their advocacy aligns closely with the Unity Government’s vision of creating high-technology, high-impact, and high-income employment opportunities through Technical and Vocational Education and Training (TVET) pathways within the aerospace sector.
 

For additional information, kindly contact;
Dzul Bahrin Bin Asmawi
Secretary * Email: dzul.mdar@gmail.com * Tel: 019-388 3770

 
For further reference, please find the link below;
https://myaerosatu.blogspot.com/2025/06/message-from-myaerosatu-chairman.html
https://myaerosatu.blogspot.com/2025/06/blog-column-better-late-than-never-by_24.html